Credit Suisse Raising Estimates On Franklin Resources

Credit Suisse is raising its earnings estimates on shares of Franklin Resources BEN. It still rates shares at Neutral and has a $152 price target on shares. In a note to clients, Credit Suisse writes, "BEN released 6/30 AuM of $734B, up 4.4% q/q, and 1% above our previous forecast: BEN's AuM declined by 0.2% m/m, stronger than the 1.8% decrease for the S&P 500. Global taxable fixed income was the largest positive contributor, with 15% / $25B q/q absolute growth. We estimate the majority of this growth came from net inflows, and not positive marks." Credit Suisse goes on to say, "We raised our June Quarter / FY 2012 EPS estimates to $2.14 / $10.45 from $2.10 / $10.30. We have also raised our FY2011/FY2013 EPS estimates to $9.00/$12.00 (from $8.91/$11.70) respectively. We also look for net flows to increase to the mid $20B range, up from $11B q/q. This represents about 15-16% annualized organic growth - the strongest in our coverage. Our target price increases to $152 from $150 (implies 15x multiple on FY '12)." Shares of BEN closed at $131.76 yesterday.